Basrah Gas Company
Natural gas business Basrah Gas Company
Contribution towards, stable energy supply both in and out of the region, environment conservation, and reconstruction promotion by recovery and processing of associated gas in Basrah province, southern Iraq.
Despite Iraq being one of the world's leading producers of crude oil, investments in oil and gas facilities were stagnant due to the long-standing state of war, and there were no facilities in place to refine and process the associated gas generated during oil production. The associated gas was flared, causing a major environmental problem not only because of the massive generation of greenhouse gas but also the damage to human health from air pollutants such as nitrogen oxides and sulfur oxides.
Basrah Gas Company is a natural gas refining and sales company whose investors are Mitsubishi Corporation, the state-operated South Gas Company of Iraq, and Shell. Since operations began in 2013, the company has been recovering and refining flare gas generated from three oil fields in southern Iraq (Rumaila, West Qurna 1, and Zubair), and selling gas for power generation, LPG and condensates both in Iraq and abroad. The gas recovered and refined through this project is used as an energy source in Iraq, contributing to the country's chronic shortage of electricity, and also contributing to the development of the local economy by creating jobs through the project.
The project has been recognized for its effective use of energy that was previously wasted and its reduction of air pollutants, and in 2021, the company signed the first green loan in the oil and gas industry with the International Finance Corporation (IFC) of the World Bank Group.
Natural gas business
|Shareholder composition||South Gas Company of Iraq (51%), Shell (44%), Mitsubishi Corporation (5%)|
|Location||Basrah province, southern Iraq|
|Equity share of production capacity||52.5 million cubic feet/day|